4 Ways to Save Money on Car Insurance Renewals

Car Insurance Renewal

That vehicle insurance is both, mandatory as per the Motor Vehicle Act of 1988, and indispensable, is a known fact. You should not be driving your vehicle on public roads unless you have a valid car insurance policy. If you are caught driving without valid insurance, you could be look at some serious legal and financial troubles, including fines and jail time. As such, you shouldn’t take insurance lightly. If you find renewing your insurance policy a bit of a hassle, here’s something that will cheer you up. You can save money on car insurance renewal. Find out how in this article below.

Compare insurance plans online before renewal: Gone are the days when you had to visit the insurance provider’s office with your cheque book in tow. You do not even have to go through an agent any more. When your insurance policy is close to expiration, all you need to do is go online and compare the various insurance plans offered by different insurance providers. Online car insurance renewal comes with many benefits, including monetary ones. Most insurance companies offer discounts on premiums for purchasing insurance online. They also run offers on credit/debit cards which can lead to further savings.

Utilize the accumulated No claims bonus: Policy holders are entitled to a reward known as the no-claims bonus for each consecutive year of not making any claims against their insurance policy. This discount starts at 10%-20% in the first claim-free year, until it rises to a whopping 50% off the original premium amount, around the 5th or 6th year of policy renewal. This simply means you have to pay only half of the original premium you paid during the time of car insurance policy renewal. As such, you should always remember to utilize your no-claims bonus as it is the best way to get discounts on your insurance premium and save money, year after year.

Install an anti-theft device in your car: One of the reasons why people end up paying a huge amount of insurance premiums is because they opt for policies that insure their vehicles against theft. However, there is a simple, elegant and economic solution that can considerably reduce the insurance premium amount. You can take measures to improve the safety of your car easily by installing an anti-theft device. The reward you get for increasing the security of your car by installing this device is a discounted car insurance premium amount. This is simply because installing an anti-theft device makes your car less prone to thefts.

Choose a higher voluntary deductible limit: No matter the type of vehicle insurance you purchase, you have the freedom of selecting the voluntary deductible limit. The voluntary deductible limit basically signifies the amount of the claim you have to bear from your own pocket, while filing a claim. If you file a claim, you are expected to pay the voluntary deductible limit while the insurance provider pays the remaining amount. If you believe you are a safe driver and you have confidence in your driving skills, it makes sense to choose a higher voluntary deductible limit at the time of car policy renewal. Opting for a higher voluntary deductible limit can help you get a good discount on your insurance premium.

Car insurance renewal on a timely basis comes with several merits which can help you save money. You cannot get any of these benefits if your policy lapses. In fact, you, will have to get your vehicle examined again, would end up spending more on premiums, and would have to forfeit all the accumulated no-claims bonuses over the years.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.